Early-stage SaaS founders-Here is a 101 on metrics nobody told you ever

Early-stage bottom-up SaaS founders – this thread is for you

Below πŸ‘‡
πŸ”¬ Most important metrics to track
πŸ›  Tools to track these metrics
🎨 How to best visualize and share these metrics

1/ πŸ”¬ What metrics should early-stage bottom-up SaaS founders focus on?

✨ Pre-revenue ✨

1. Retention:
βœ” User: % of new users who are still active 3-6 months later
βœ” Logo: % of new companies who are still active 3-6 months later
βœ” L7/L30: # of days that users are active

2/ Virality within an organization:
βœ” Invite rate: % of new users who sent at least one invite in the first X days
βœ” Invite conversion rate: % of users who receive an invite that sign-up in the next X days
βœ” Virality factor: % of new users who have come from an invite
3/ Top-of-funnel growth:
βœ” Traffic: Visits to site/week
βœ” MoM new user growth: Month over month growth rate in total users
βœ” Activation: % new users who β€œactivate”, whatever that means for your product
4/ πŸ€‘ Post-revenue:

1. Revenue growth
βœ” MRR: MoM MRR growth
βœ” ARR: MoM ARR growth
βœ” New customers: New customers/week

2. Retention
βœ” Customer: % of new paying customers who are still customers 3-6 months later
βœ” Net Dollar Retention: MRR of each cohort at 12 months

5/ 3. Monetization
βœ” Paid company conversion: % of free companies that convert to paid within X days
βœ” Payback period: Average time to pay back CAC
βœ” Gross margins: Net sales revenue minus the cost of goods sold
6/ 🧐 Additional metrics to track and have available:

1. Engagement
βœ” DAU/MAU
βœ” Key actions per day/week (e.g. tasks created, pics sent)
βœ” Average time spent/user/day

7/ 2. Virality within an organization
βœ” Invite volume: When an invite was sent, median number of invites sent per user
βœ” Velocity of virality: Median days from 1 β€”> N seats at a company
βœ” Traction: Number of total companies with at least 3 users signed-up
8/ 3. Monetization
βœ” ARPU: Average revenue per user
βœ” User conversion: % of free users that convert to paid within X days
βœ” Quick ratio: (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR)
βœ” Growth spend efficiency: CAC/LTV
9/ 4. Funnel conversion
βœ” Landing conversion: % visitors click CTA
βœ” Activation: % visitors who β€œactivate”, whatever that means for your product
βœ” % visitors complete your sign-up flow
βœ” % visitors signup


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